Fleet World Workshop Tools
Car Tax Calculator
CO2 Calculator
Car Comparator
Van Tax Calculator
EV Car Comparator
BiK Rates Company Car Tax

Liaise with leasing companies to curb end-of-contract charges, says Alphabet

McNally said: ‘Leasing companies don’t want to have end-of-contract charges. We would rather price for vehicle usage appropriately at the outset.

‘If a fleet is going to use a vehicle in a quarry then don’t tell us that it will be used on the motorway because we will build the price strategy against that usage.’

He told delegates: ‘Talk to your leasing provider who will structure a rental that works for you and them.’

Using the example of a BMW 320d Efficient Dynamics, McNally said experts CAP predicted a residual value in “clean” condition of £9,950 at three years/60,000 miles (May 2013); £9,400 in “average” condition and £8,800 in “below average”.

 ‘A £1,150 reduction on a car worth less than £10,000 is significant,’ said McNally, who urged fleet managers and drivers to appraise vehicle condition up to three months prior to the end of lease termination.

‘De-hire damage is the biggest cause of dispute between leasing companies and their customers. Inspecting vehicles 10-12 weeks before end of contract means fleet managers have the opportunity to mitigate end-of-contract damage charges.’

He also urged fleet managers to remind drivers of leased vehicles to ensure cars and vans were serviced in accordance with manufacturer schedules, saying it was ‘key to a vehicle retaining its value’.

Finally, he reminded fleet operators that the non-return of keys – both the master key and the “slave” key – was a further “significant” end-of-contract additional charge for fleets.

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.